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17 APRIL 2020 AL CIRCLE

COVID19 Effect: China’s daily aluminium production in March dropped 1.7%, according to Reuters calculations

EDITED BY : DEBANJALI SENGUPTA 2MINS READ

According to Reuters calculations based on the official data on Friday, China’s daily aluminium output in March dropped by 1.7 per cent compared to the earlier two months. Supply disruption and incessant price fall of the metal due to the COVID19 outbreak resulted in daily production drop.

COVID19 Effect: China’s daily aluminium production in March dropped 1.7%

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But as per the data from the National Bureau of Statistics, China’s monthly aluminium production in March grew 2.3 per cent over the year, amounting to 2.97 million tonnes. With this, China’s total first-quarter output came in at 8.84 million tonnes, up 2.7 per cent year-on-year.

According to Reuters, China’s total daily aluminium output in January and February of this year was 97,450 tonnes, which in March declined to 95,800 tonnes, the lowest daily rate since October.

The bureau did not typically release industrial output date of January and February individually due to the distortion of Lunar New Year.

Industry 4.0 in Aluminium

The COVID19 outbreak in China led to weak demand for aluminium in March, along with a scarcity of labourers at aluminium processors and slow return to work due to the restrictions imposed by the Chinese government for COVID19 containment since February. Coupled with this, broad selloff of the metal by panicked investors pushed the Shanghai aluminium prices to as low as RMB 11,255 per tonne in March, the lowest since early 2016. All this eventually led the smelters to put production lines into maintenance to avoid losses.

China’s output of 10 nonferrous metals, including copper, lead, zinc, and nickel, rose 1.6% year-on-year to 4.83 million tonnes in March, the lowest monthly total since May 2019.

Tagged with:

Aluminium China Price Market

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EDITED BY : DEBANJALI SENGUPTA 2MINS READ

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